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Reinhold Industries Reports Record Sales and Net Income in 1999

17 February 2000

Reinhold Industries Reports Record Sales and Net Income in 1999

    SANTA FE SPRINGS, Calif., Feb. 17 -- Reinhold Industries,
Inc. (OTC Bulletin Board: RNHDA) of Santa Fe Springs, California, today
announced results for the fourth quarter and full year 1999.
    The company reported fourth quarter 1999 revenues of $9.2 million, up
17% from $7.8 million for the fourth quarter 1998.  Sales increased by
$1.0 million at the NP Aerospace Ltd. subsidiary, located in Coventry,
England, due mainly to sales of armored vehicles.  In the United States, sales
of Aerospace products increased by $0.3 over the fourth quarter 1998.
    For the full year 1999, revenues were $39.1 million, up 51% from
$26.0 million for the full year 1998.  Sales at NP Aerospace increased by
$9.8 million compared to 1998 due mainly to sales of armored vehicles.  NP
Aerospace was acquired by Reinhold on April 24, 1998.  Also, sales of
composite aircraft seatbacks contributed $3.1 million of the revenue increase
over 1998.  Net income for the full year 1999 was $5.0 million (12.9% of
sales), or $2.52 per basic share, compared to a net income of $2.1 million
(8.2% of sales), or $1.07 per basic share, for the full year 1998.  On a fully
diluted basis, earnings per share were $2.51 and $1.07 in 1999 and 1998,
respectively.
    "We are extremely pleased with our record financial performance in 1999,"
said Michael T. Furry, president and CEO of Reinhold.  "We do, however, expect
a softening of sales and profitability in 2000 due to the unpredictability of
armored vehicles sales at NP Aerospace and a reduction of commercial aircraft
seatback shipments to our main customer, B/E Aerospace."
    Reinhold Industries, Inc. is a manufacturer of custom advanced composite
components for the commercial aircraft seatback industry, the defense industry
and other commercial industries.